Ajay Kumar Verma
The insurer, whose motor portfolio is already outpacing industry growth, sees renewed demand during the Navratri and Diwali period and anticipates that stronger private-car sales will help offset margin pressure from its loss-heavy two-wheeler segment.
Go Digit General Insurance posted a 31.5% jump in PAT, reaching Rs 117 crore for the July–September quarter of FY26 compared with Rs 89 crore a year earlier. Profit before tax rose to Rs 136 crore, helped by steady premium growth and disciplined expense management.
The company’s gross written premium (GWP) — the total value of policies sold before accounting for reinsurance — increased 12.6% to Rs 2,667 crore from Rs 2,369 crore in Q2 FY25.
Its net earned premium (NEP), which represents the portion of premium actually recognised as income after accounting for reinsurance and policy periods, rose 10.4% to Rs 2,088 crore.
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Go Digit’s motor portfolio mix now stands at 45% private car, 30% two-wheeler, and 25% commercial vehicles, according to details shared on the call. The pivot toward two-wheelers has supercharged growth volumes — new two-wheeler business rose to Rs 451 crore in Q2 — but it has also become the main drag on profitability, management acknowledged.
Executives explained that the company books five years of commission costs upfront, while the corresponding premium is recognised over the same period. The mismatch inflicted a Rs 53 crore hit to the profit and loss account in the quarter.
Chairman Kamesh Goyal defended the strategy, saying higher two-wheeler penetration would strengthen the insurer’s long-term assets under management (AUM) even if it depresses near-term profitability.
Meanwhile, the company’s commercial lines business — particularly fire, marine, and engineering — grew more than 50% year-on-year, as discussed on the call. Profitability, however, was hit by three large fire losses and a major flood claim.
The fire book, which has been expanding at more than twice the industry’s pace, remains a growth engine but continues to reflect the inherent volatility of property underwriting in a year marked by extreme weather, management said.
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